“I find this action is in the state’s best interest and is an appropriate use of state land,” Bill Van Dyke, acting director of the division, said in the decision document.

There is a 20-day appeal period on the decision.

Kerr-McGee needs tidelands access within the Kuparuk River unit for production center, pad and pipeline construction. Obtaining this access has been one of two issues holding up the Nikaitchuq development. The state has not yet made a decision on the other issue, a request by Kerr-McGee for royalty relief for Nikaitchuq.

Editor’s note: Watch for the full story on Nikaitchuq in the April 2 edition of Petroleum News.